Fund managers 'should back advisers'

An increasing number of fund managers are expanding into offering advice alongside their core products.

"We're seeing fund managers are now starting to offer advice directly, which is something Mint won't be doing," he said.

Distribution was key for the industry, he said. It needed to get its message across to everyday New Zealanders who were missing out on returns and short-changing their futures by leaving their money in bank accounts.

"That's probably why some fund mangers are going down the advice route but it can also cause conflict with the third-party channel you have been working with to build your business. You need to be careful how you manage that."